FX.co ★ Malaysia Manufacturing PMI Hits 5-Month High

The S&P Global Malaysia Manufacturing PMI experienced an increase to 49.7 in July 2025, a rise from 49.3 in June, marking the highest score since February and indicating a slower rate of contraction. The decline in new orders was the most subdued in five months, suggesting a move towards stabilization, and the decrease in output was the slowest since February. In particular, overseas sales grew for the first time in eight months, positively impacting overall demand. Purchasing activities saw an uptick, marking the first increase in three years and the strongest since April 2022. Employment levels saw a slight decline as the backlog of work continued to diminish, with the depletion rate accelerating to its quickest since February. Regarding pricing, input cost inflation rose for the third consecutive month, reaching its peak since November 2024, driven by the rising costs of raw materials and a weaker ringgit. However, output price inflation remained largely stable, with only a modest increase. Lastly, business confidence reached a five-month high, buoyed by expectations of an upturn in market demand.